Bitcoin broke through the US$90,000 mark this morning, reaching a maximum of US$93,265, and had fallen back to US$89,458 by the time of writing. The CoinMarketCap Fear and Greed Index has switched to the "extreme greed" range over the past two days; the last time it was in this range was more than half a year ago, when Bitcoin hit a previous high of $73,777 in March. This shows that investors are generally bullish on the market outlook, and this is reflected in some communities.
Image source: CoinMarketCap Greed and Fear Index
This market has also driven the price fluctuations of some altcoins. Cardano ($ADA) has started to rise for five consecutive days since the election day (11/6), soaring from US$0.3335 to a maximum of US$0.6599, with an amplitude of 97%. It has fallen back before the deadline. to $0.5707. (BeInCrypto) analysts pointed out that several indicators suggest that Cardano ($ADA) may be losing momentum, otherwise it is a potential reversal.
Cardano ($ADA) Average Trend Indicator
$ADA’s average trend indicator (ADX) is at 45.02, down from 70 the previous two days. Typically a decrease in ADX indicates a weakening trend strength and bulls may be losing momentum. Although Cardano ($ADA) is in an uptrend, the decline in its ADX shows that the pace of the rise has slowed.
Note: ADX (Average Trend Index) is a technical indicator used to measure trend strength. When ADX is above 25, it means that the price trend is strong; when ADX is below 20, it means that the price is weakening or consolidating.
Source: (BeInCrypto)Cardano ADX Indicator
The Cardano ($ADA) whale is coming home
Santiment data shows that from October to early November, the number of addresses holding 1,000,000~10,000,000 $ADA remained stable; however, from November 8 to the end of last week, the number of addresses increased from 2,432 to 2,451, and then entered the stagnation stage.
Source: (BeInCrypto)Cardano whale count
The reason why whale addresses are tracked is because their purchases and sales can have an impact on currency prices. Analysts believe that the improvement in this data last week indicates that whales are accumulating Cardano ($ADA); the stagnation in the past two days means that Cardano ($ADA) may experience a short period of consolidation before the next big fluctuation. .
Could Cardano ($ADA) Reach “This Point” in November?
Analysts say that the $ADA short-term EMA is above the long-term EMA, indicating that $ADA has been in an upward trend over the past few days; however, $ADA has now fallen below the EMA20, indicating that the bullish momentum may be weakening.
The nearest price resistance for $ADA is at $0.62 and $0.67, and a breakout could see a further 35% rise to the March high of $0.8; conversely, if the trend weakens, a pullback to $0.47 or $0.41 is possible.
Source: (BeInCrypto)Cardano Price Analysis
Cardano on-chain data
Liquidity
Cardano on-chain liquidity saw a huge increase of 69.1% last week, with the total value locked (TVL) at press time. This surge is mainly due to Cardano founder Charles Hoskinson revealing in a live broadcast that his company Input Output is preparing to establish a policy department with the goal of cooperating with the US government to promote the implementation of cryptocurrency-related legislation.
Image source: DefiLlama Cardano on-chain liquidity
Another positive for on-chain liquidity is the Bitcoin cross-chain bridge BitcoinOS, which Cardano integrated two weeks ago. This protocol can introduce native Bitcoin to the Cardano network and further connect to Merlin in the future ($176 million) and BSquared ($253 million), a cross-chain pipeline for two Bitcoin-compatible chains.
Stablecoin issuance
In terms of stablecoin issuance, Cardano’s market value surged 57.2% on October 22 with the massive issuance of $USDM. The market value before the deadline was US$19.51 million, with the highest market share being $USDM (US$7.52 million). ); before this, the stablecoins available in the Cardano ecosystem only included 4 stablecoins based on $IUSD ($6.86 million), $MyUSD ($2.29 million), $DJED ($2.79 million) and $RUSD ($38,000). Algo-Stable or over-collateralized (CDP) categories, such stablecoins are often limited by higher risks and poor user experience and are difficult to circulate in large quantities; therefore, in the issuance of $USDM based on physical asset reserves Later, the Cardano ecosystem began to have growth potential.
Source: DefiLlama Cardano Market value of various stablecoins
DeFi activities
It is worth noting that Cardano’s on-chain activity did reach its highest peak in the past three months last week following this series of gains; its single-day on-chain transaction volume reached a peak of $12.9 million on November 10 , the number of active addresses in a single day came to 88,200. We will continue to pay attention to the trend of on-chain data to determine whether the Dominance of the Cardano ecosystem in the DeFi sector has significantly improved.
Image source: Artemis Terminal Cardano Ecological Activity
[Disclaimer] There are risks in the market, so investment needs to be cautious. This article does not constitute investment advice, and users should consider whether any opinions, views or conclusions contained in this article are appropriate for their particular circumstances. Invest accordingly and do so at your own risk.
“Altcoins are not weak! Analyst: "This coin" has soared 50%, is it expected to rise another 35%? 』This article was first published in "CryptoCity"
